Chinese CDOs
Today's FT reports that CDOs (collateralised debt obligations) are appearing in China. Three companies in Jiangsu province: Changzhou Shende Seamless Tube, Changzhou Dongfeng Agricultural Machinery and Xinhua Chang Group have joined together to issue Rmb260m joint three year debt. The credit ratings of the three companies are BBB, BBB+ and A- but the joint bonds are rated AAA because they are supported by the local government. Caveat emptor...
posted by Whispering Walls at 8:14 am
2 Comments:
Nothing like a triple A portfolio to help you sleep soundly at night.
... which just goes to show how spurious these things are....
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